E-INVOICING LIMIT REDUCED TO 5 CRORE FROM 10 CRORE W.E.F 01-08-2023

Notification No. 10/2023-Central Tax Dated: 10th May, 2023 related to Central Goods and Services Tax Rules, involving a reduction in threshold limit for GST E-Invoicing from ten crore rupees to five crore rupees, effective from August 1, 2023.

Earlier registered person whose turnover exceeds Rs. 10 crore is required to comply with e-invoice provision which means he must generate e-invoice against each tax invoice, debit note, credit note issued to registered person.

Now on 10th May’2023 Ministry of Finance by Notification No. 10/2023 central tax has notified that person registered under GST and having turnover more than Rs. 5 Crore in any financial year from 2017 – 18 is required to comply with the e-invoice provisions w.e.f. 01st August 2023 i.e., he will be required to generate

IRN/e-invoice against followings: –

1. Each tax invoice, debit note & credit note issued to registered person.

2. Export Transactions

Above e-invoice applicable on supply of goods as well as supply of service and this is in addition to the generation of e-way bill.

However, e-invoice shall not be applicable on following types of registered person as notified by CBIC by

Notification no. 13/2020 – Central tax amended time to time.

1. Insurance Company

2. Banking Company or a financial Institutions

3. SEZ Units

4. Government Department and Local Authorities

5. Goods Transport Agency.

**Notification Attached

E invoice Notification.pdf

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